How lawful is the ‘Co-operative’ Bank’s name now?

The proposed recapitalisation involves a debt for shares swap by the hedge funds (retail holders of Bank bonds can take 45% of their value for holdings under £100,000 instead). Together, that swap and a rights issue to the hedge funds as Bank shareholders would raise the necessary £700 million – if it is formally agreed by bondholders.

The Bank’s relationship with the Co-operative Group is affected in three key ways:

• the Group’s ownership stake in the Bank shrinks to 1%;
• there will be no Group representation on the Bank board; and
• the Group and Bank pension schemes will be split so as to end Bank liability under the Group scheme.

In addition, the Bank maintains involvement in the Group’s membership scheme, the Bank and the Group share “branding co-existence principles” and they liaise on the use of each other’s trademarks and intellectual property.

Read the rest at Co-operative News

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